Kia Stinger Introductory Lease Deal

[MarkyMark]

Loan requirements probably vary by bank. I've been using Navy Federal as my baseline, and they have the following qualifying tiers for loan types. My interpretation is that a lease buy-out loan prior to the 7500 mile mark would qualify for the new car rates.

Leave it to a Credit Union to do the right thing/have a reasonable policy. That’s great!

 

[Kia Stinger]

Welcome aboard, @Shivir and @DigitalGuru18! Thank you for signing up!

 

[Mach_Tuck]

Canyon State Credit Union in AZ offers the same rate 2.24% on New and Used and will even go to 125% LTV if wanted!

 

[Helo58]

Can somebody add this into my first post?
View attachment 1200

Hi @Larry Denen , new to the forum and still getting used to the format. I was going to PM you but the "conversation" feature isn't clear to me. In any event, where were you able to find these residuals and money factor numbers? Is there a current version with new numbers (i.e. $7200 GT2 lease money)? I am shopping the car and the dealer is quoting me ridiculous money factors and residuals.

----edit. Found this in a different thread. Still don't know how to start a "conversation" though. Haha.

 

[Helo58]

Well, as I learn more, I know less. Haha. The dealer quoting me the deal has made the lease MF worse (by the 0.004 allowed by KMF) and took away a point for residual. As I understand it now, a successful lease will have a low negotiated price, a low money factor, and a high residual to be ideal. Can anyone offer any guidance on how to plug in the KMF lease cash and taxes into a lease calculator as well as other fees? Also, can anyone provide guidance on how to interpret fees when negotiating with a dealer? Documentation fees seem to vary wildly for example.

 

[Kia Stinger]

Bump for our lease experts. Can anyone assist @Helo58? Also, is the Introductory Lease Deal still going on?

 

[Mach_Tuck]

Website says current deals expire 2/28...

 

[MarkyMark]

Well, as I learn more, I know less. Haha. The dealer quoting me the deal has made the lease MF worse (by the 0.004 allowed by KMF) and took away a point for residual. As I understand it now, a successful lease will have a low negotiated price, a low money factor, and a high residual to be ideal. Can anyone offer any guidance on how to plug in the KMF lease cash and taxes into a lease calculator as well as other fees? Also, can anyone provide guidance on how to interpret fees when negotiating with a dealer? Documentation fees seem to vary wildly for example.

If you plan to rent the car and never buy it, this is about right. Lowest Money Factor you can get, lowest negotiated Capital Cost, and lowest Money Factory, HIGHEST residual. Theoretically, this should get you your lowest monthly rental/lease fee.

 

[Arthas429]

Went to the dealership over the weekend. Got quoted $850/month for 45k miles/3years with zero down (just tax, title, fees) and rolling in $1650 from my current lease. Pretty sure I'm getting hosed on that deal?

Don't most dealerships eat the old lease payments?

 

[Helo58]

Went to the dealership over the weekend. Got quoted $850/month for 45k miles/3years with zero down (just tax, title, fees) and rolling in $1650 from my current lease. Pretty sure I'm getting hosed on that deal?

Don't most dealerships eat the old lease payments?

Well, I think they might only eat a disposition fee or turn-in fee, everything else they are passing on to you. With the mileage increase (15k per), the current lease roll-in, and TTF it sounds like you are in the range of a standard dealer deal that would be their starting point. They don't appear to be doing you any favors with the deal though.

 

[iclicku]

Without the MSRP, sales price, trim I couldn't give you the info you're looking for. I would suggest you look into Lease Calculator in order to get an idea what your deal looks like.

 

[Kia Stinger]

Went to the dealership over the weekend. Got quoted $850/month for 45k miles/3years with zero down (just tax, title, fees) and rolling in $1650 from my current lease. Pretty sure I'm getting hosed on that deal?

Don't most dealerships eat the old lease payments?

Welcome aboard, @Arthas429! Thank you for signing up!

 

[MarkyMark]

Went to the dealership over the weekend. Got quoted $850/month for 45k miles/3years with zero down (just tax, title, fees) and rolling in $1650 from my current lease. Pretty sure I'm getting hosed on that deal?

Don't most dealerships eat the old lease payments?

@Arthas429, not sure how you approached it, but you need some fundamentals laid out so people that are very knowledgable on this forum can help you out. @MurlinatoR is awesome. I can give $.02 worth also.

That said, which model (MSRP) are you purchasing?
I would then suggest you start by negotiating down the MSRP down. Around the Pac NW most will take $2k off easy now.
Make sure you know the Lease Cash figure for your model and apply it.

For an example, let's go all-in and go with a GT2 AWD model. $49,200 (+ delivery $900) = $50,100
You negotiate $2,900 off the sticker to a cost of: $47,200
The lease cash for this model is $7,200 (so take that off the $47,200)
This leaves you with a Capital Cost of: $40,000

Now, take the sticker of $49,200 * .52 = the Residual Value of $25,584 (the price you can buy the car after the lease term).

Now we can figure out what your 36mo monthly Rent Fee should be!

Take the Capital Cost ($40,000) and add it with the Residual Value ($25,584), which = $65,584

Now for your interest, called the Money Factor. The best rate you can get with a great credit score (700+) and the dealer not throwing in a bit extra, which is allowed by Kia Financial, is .000196.

$65,584 x .00196 = $128.54 in monthly interest.

Now, take the Capital Cost of $40,000 - Residual Cost of 25,584, and you get $14,416.
Divide $14,416 by 36 months = $400.44 a month.

Add the $400.44 to the interest of $128.54, and your monthly lease fee should be: $528.98 per month, with a Residual Value of $25,584 to purchase.

NOTE: You said you had 45k miles baked in. that is 5,000 miles MORE per year than what is built into the non-altered lease program with 10k miles a year. I do NOT know how to factor that in.

I believe each mile is $.20 additional. Thus, $.20 x 15k = $3,000

$3,000 divided by 36 months = $83.33 a month more. I'd just make sure they are not backing that $3k INTO the Rental Fee and thus adding interest to your milage! Ack! That would be horrible, but I can see a dealer doing that instead of just straight adding the fee w/out interest to the monthly lease fee...

I would also suggest that adding more miles CERTAINLY changes the Residual Value. Thus the .52 multiplier of the sticker is going to be lower... Or it SHOULD BE! Another 45k miles after 3 years instead of 30k miles? Hmmm... I have no idea. This is where the dealer "could" play games. I would assume it would be worth 46% or so?... And that changes the ENTIRE equation.

Hope this helped! Good luck!

 

[iclicku]

Fyi residual is based off msrp. Not negotiated sales price.

 

[MarkyMark]

Fyi residual is based off msrp. Not negotiated sales price.

Hmmm... Thought I said that/did that?

"Now, take the sticker of $49,200 * .52 = the Residual Value of $25,584 (the price you can buy the car after the lease term)."

But maybe I missed something? Could be. I've only been practicing/learning for about a month now, but getting better at this!

 

[iclicku]

Oh my fault!

 

[Dave Miller]

Don't most dealerships eat the old lease payments?

That's definitely something you could negotiate with the dealership, but all the money comes from somewhere so it would ultimately be them discounting their car $1,600. Occasionally Kia has the Pull Ahead Program which lets you turn in your lease 3 months early and waive your last 3 payments, but that's only if you're leasing a Kia.

 

[MarkyMark]

That's definitely something you could negotiate with the dealership, but all the money comes from somewhere so it would ultimately be them discounting their car $1,600. Occasionally Kia has the Pull Ahead Program which lets you turn in your lease 3 months early and waive your last 3 payments, but that's only if you're leasing a Kia.

Thanks Dave for chiming in. Stopped by your dealer twice in the past month or so. From PDX-land, but get down to Salem often, and beyond, to visit my customers. You guys have a great selection of Stingers, and have great, and non-pushy sales team. Really appreciate that. Thank you!

NOTE: Anyone looking to purchase, that $7,200 (GT2 AWD - less for other models of course) Lease Cash can come in handy! As with ANY LOAN, you can pay off steam of payments immediately if you wish. Thus you could do a same-day Lease/Buy. Pay the first month's Lease Fee, and then add up your Rent Fee (without the interest) and pay off the Principal to Kia Financial and then get a loan (or cash, whatever financial situation you may be in) and buy the car.

There is a $350 or so buyout fee and such, but it is peanuts compared to what you save in purchasing a car this way!

I've done the math on the GT I'm looking at, and could save around $2k vs a purchase right now. Granted, if rebates come out for purchasing it may be a wash. But if purchasing leases come out, the Lease Sheets are likely to change also...

Some may want to wait until March 1st to see what the new programs look like. Interest rate fears being what they are, maybe now is a good time, but Lease Cash is likely to increase to counter, and as lots fill up, incentives of some type will arrive. My $.02 worth!

 

[Dave Miller]

Thanks Dave for chiming in. Stopped by your dealer twice in the past month or so. From PDX-land, but get down to Salem often, and beyond, to visit my customers. You guys have a great selection of Stingers, and have great, and non-pushy sales team. Really appreciate that. Thank you!

Good to hear! I'm glad the team treated you well - I always tell people we're non-pushy around here but most people take it with a grain of salt with me being a salesman Glad you liked our selection too, I'm about to get them all posted in our dealer forum for people to see.

I definitely think you're correct with the lease purchase being the best way to buy at the moment. I'd imagine some purchase rebates will be coming when the current incentives end. There's almost no reason to buy over lease right now.

 

[Mach_Tuck]

@Arthas429, not sure how you approached it, but you need some fundamentals laid out so people that are very knowledgable on this forum can help you out. @MurlinatoR is awesome. I can give $.02 worth also.

That said, which model (MSRP) are you purchasing?
I would then suggest you start by negotiating down the MSRP down. Around the Pac NW most will take $2k off easy now.
Make sure you know the Lease Cash figure for your model and apply it.

For an example, let's go all-in and go with a GT2 AWD model. $49,200 (+ delivery $900) = $50,100
You negotiate $2,900 off the sticker to a cost of: $47,200
The lease cash for this model is $7,200 (so take that off the $47,200)
This leaves you with a Capital Cost of: $40,000

Now, take the sticker of $49,200 * .52 = the Residual Value of $25,584 (the price you can buy the car after the lease term).

Now we can figure out what your 36mo monthly Rent Fee should be!

Take the Capital Cost ($40,000) and add it with the Residual Value ($25,584), which = $65,584

Now for your interest, called the Money Factor. The best rate you can get with a great credit score (700+) and the dealer not throwing in a bit extra, which is allowed by Kia Financial, is .000196.

$65,584 x .00196 = $128.54 in monthly interest.

Now, take the Capital Cost of $40,000 - Residual Cost of 25,584, and you get $14,416.
Divide $14,416 by 36 months = $400.44 a month.

Add the $400.44 to the interest of $128.54, and your monthly lease fee should be: $528.98 per month, with a Residual Value of $25,584 to purchase.

NOTE: You said you had 45k miles baked in. that is 5,000 miles MORE per year than what is built into the non-altered lease program with 10k miles a year. I do NOT know how to factor that in.

I believe each mile is $.20 additional. Thus, $.20 x 15k = $3,000

$3,000 divided by 36 months = $83.33 a month more. I'd just make sure they are not backing that $3k INTO the Rental Fee and thus adding interest to your milage! Ack! That would be horrible, but I can see a dealer doing that instead of just straight adding the fee w/out interest to the monthly lease fee...

I would also suggest that adding more miles CERTAINLY changes the Residual Value. Thus the .52 multiplier of the sticker is going to be lower... Or it SHOULD BE! Another 45k miles after 3 years instead of 30k miles? Hmmm... I have no idea. This is where the dealer "could" play games. I would assume it would be worth 46% or so?... And that changes the ENTIRE equation.

Hope this helped! Good luck!

I think the only item not considered here is sales tax. Whether based on full MSRP or use only depending on the particular state.